KUALA LUMPUR (Feb 24): PublicInvest Research has maintained its maintain  “Outperform” call on Uzma Bhd with a higher target price (TP)of RM1.05 (from 80 sen) based on 10x PER to a rolled-over CY24 EPS, and said Uzma reported a strong core net profit of RM11.7 million in 2QFY23 from a breakeven in 2QFY22.

In a note on Friday (Feb 24), the research house said this is on the back of revenue growth of 84.0% y-o-y driven by contribution from well services activities and operational efficiency in the absence of restrictive COVID-19 SOPs.

However, it said that on a q-o-q basis, core net profit dipped 14.4% attributed to higher proportion of contributions from the trading segment which typically carries lower margins as compared to well services.

“Overall, 1HFY23 results surpassed both our and consensus FY23 estimates at 84% and 105% of full-year numbers respectively.

“We raise FY23-25F earnings by 22%-38% on account of better overall margins, having held consistent (and even trumping estimates) for three consecutive financial quarters.

“Our optimistic view is also substantiated by the recent multiple contract awards within the last one month. We maintain our Outperform call and raise our TP to RM1.05 (from RM0.80) based on 10x PER to a rolled-over CY24 EPS,” it said.